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Student Car Finance: The Fact File

Student Car Finance

Car Finance for Students

Whether you’re travelling to-and-from university, or getting to your job on time - even taking a quick trip to see family and friends, today’s busy students are in need of a car.

Quality cars are expensive and that means you’ll usually need a student car finance deal. Unfortunately, many finance companies are reluctant to offer car finance to students.

At Stoneacre, we offer car finance for young drivers and graduates; we even offer car finance for young drivers with bad credit scores. To help you navigate around your choices, we’ve compiled a student fact file to help you uncover the car finance facts.


Representative Example

Cash Price£16,551.73
Deposit£1,578.78
Term49 months
Payment£367.83
Amount of credit£14,972.95
Fixed Interest4.99%
Representative APR10.62%
Total Charge for credit£3,449.86
Option fee (included in total charge for credit)£399.00
Total Amount Payable (Incl. Deposit)£20,001.59

We are a credit broker and a lender. We can introduce you to a limited number of lenders and their finance products. We will provide details of products available, but no advice or recommendation will be made. You must decide whether the finance product is right for you. We do not charge you a fee for our services. Lenders may pay commission to us (either a fixed fee or a fixed percentage of the amount you borrow) for introducing you to them, this may be calculated in reference to a variable factor such as (but not limited to) the vehicle age, your credit score and the amount you are borrowing. Different lenders may pay different commissions for such introductions.

Fact 1 ▶ You can get student car finance with Stoneacre

Stoneacre is able to provide car finance for students and that’s a fact!


We fully understand the importance of being able to drive in your student years. Having a car gives you the freedom and flexibility to combine part-time work with your full-time studies.


Despite this, most conventional finance providers are reluctant to provide car finance deals to students for 2 main reasons:

Fact 2 ▶ Building your credit history can help you get student car finance

Not having a credit history isn’t unusual for students. When it comes to student car finance deals, it can sometimes hold back your application. Thankfully, there are a some simple steps that you can take to change this:

Most students have a mobile phone, and many are on contract. Making sure that the contract is in your name and you are paying your bill monthly can build a positive credit profile that other lenders see. Pay on time - every time - and lenders will recognise that you’re responsible with money and will take this into consideration with your application.

If you have a student bank account, your bank might offer you a student credit card with a low credit limit. Start using this to make small purchases, then pay off your balance in full at the end of each month. Again, this will show responsible money management and help you build a positive credit profile.

Another thing you can do to improve your credit history is to get on a register. If you're on a register, then the credit check companies can identify your personal information and link it back to you as it shows up on your credit report. Additionally, you will save time on manually entering your data and verifying details.

  • Start a mobile phone contract

    Most students have a mobile phone, and many are on contract. Making sure that the contract is in your name and you are paying your bill monthly can build a positive credit profile that other lenders see. Pay on time - every time - and lenders will recognise that you’re responsible with money and will take this into consideration with your application.

  • Get a bank account credit card

    If you have a student bank account, your bank might offer you a student credit card with a low credit limit. Start using this to make small purchases, then pay off your balance in full at the end of each month. Again, this will show responsible money management and help you build a positive credit profile.

  • Register on an electoral roll

    Another thing you can do to improve your credit history is to get on a register. If you're on a register, then the credit check companies can identify your personal information and link it back to you as it shows up on your credit report. Additionally, you will save time on manually entering your data and verifying details.

Fact 3 ▶ Improving your credit report can help first-time car buyers

Bad Credit Score

Improving your credit report can help first-time car buyers greatly, so improving your credit score is very important. The advice we provide here won’t just help to build your credit rating up from scratch, but it can also work to improve your credit rating if your credit file shows your state to be poor.

So, as briefly mentioned before, make sure that you’re listed on the Electoral Roll at your student accommodation address, even if the address may be temporary. Lenders check the Electoral Roll to confirm you’re officially resident at that address. If you’re not, they’ll be unlikely to provide student car finance for you.

Remember: the more assurances you provide, the more confident lenders will be.


Fact 4 ▶ Student car finance is available for young drivers with bad credit

White Fiat 500

Even if an applicant’s credit score is poor, we’ll work hard to arrange car finance for students with bad credit.

Stoneacre are experts at providing student car finance. Even if you have bad credit, we won’t necessarily hold this historic information against you. We understand that circumstances change so we’re far more interested in your current situation and whether you can afford the monthly repayments now and in the future.

We offer bad credit car finance over a whole range of cars. You can apply online and we will put you through a soft search, which will check your eligibility without affecting your credit score. We'll then follow you up with your application, promptly.


Fact 5 ▶ Being employed is important but not essential if you want a car as a student

Online Car Finance Application

Young Driver Car Finance

Almost every lender will ask to see evidence of a regular income when considering an application for car finance for young drivers. We understand that this can be a challenge.

Most students who work do so in a part-time job, as it's impossible to also hold down a full-time job, and this limits the amount you can earn.

At Stoneacre, we don’t believe this should mean you can’t get car finance as a student.

What matters to us is your ability to repay your finance, so as long as you receive a regular income, we will consider your application.

We’ll also consider your application for young driver car finance if you’re an unemployed student and make a joint application with a family member who is working.

Fact 6 ▶ Finance and low insurance is available for student drivers

Ford Fiesta on Student Car Finance

Student Car Finance with Insurance

For young drivers (18-24), the cost of car finance and insurance can be extremely high.

Due to a lack of driving experience, insurers tend to view the group as high risk. A high cost of car insurance is a reflection of this and in some cases, it can price certain young drivers off the road.

In addition to sourcing car finance for students, our franchises also provide FREE, low or subsidised insurance offers. Getting car finance with student deals is hassle-free with us, so take your pick from a variety of fantastic options.


▶ Student Car Finance FAQ ◀

Can a student get car finance?


Yes, even if you’re a student it is possible to get car finance. You need a regular source of income and if you have difficulties getting accepted, making a joint application for car finance with a family member who has good credit and a regular income, they can vouch for you, which is also a smart move. 


Buying a car with student loans?


You can use your student loans to cover monthly payments, however, it’s important to have an additional income, so that lenders are assured that you can make the monthly payments on time. By having this, they will see your financing as less of a risk. 

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